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How to issue a valid VAT sales invoice

Whenever you supply goods or services to another VAT registered person you must generally give them a VAT invoice. Buyers can only reclaim the VAT they have paid on their purchases if they have a valid VAT receipt from the seller.

This guide tells you what information must appear on VAT invoices, whom you should issue them to and when you should issue them. It also explains the circumstances in which you do can issue a simplified or modified VAT invoice, and when you must not issue a VAT invoice.

The guide also offers useful information about numbering your invoices, what to show in your VAT sales summary in your VAT account and how to deal with the VAT invoices you issue to international customers.

On this page:

What is a VAT invoice

A VAT invoice is simply a type of invoice that shows certain VAT details of a sale or other supply of goods and services. A buyer must have a valid VAT invoice from the supplier in order to reclaim the VAT they have paid on the sale.

VAT invoices can be either in paper or electronic form.

Find out more about how VAT invoices are used by purchasers to reclaim VAT

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What information must be shown on a VAT invoice

A VAT invoice must generally show:

  • an invoice number which is unique and follows on from the number of the previous invoice
  • the seller's name or trading name and address
  • the seller's VAT registration number
  • the invoice date
  • the tax point - the time when a sale is treated by HM Revenue & Customs (HMRC) as taking place - if this is different from the invoice date
  • the customer's name or trading name and address
  • a description of the goods or services

For each different type of item you sell, you must show the:

  • unit price or rate, excluding VAT
  • quantity of goods or the extent of the services
  • rate of VAT that applies to the items being sold
  • total amount payable, excluding VAT
  • rate of any cash discount
  • total amount of VAT charged

If you issue a VAT invoice that includes zero-rated or exempt items, you must:

  • show clearly that there is no VAT payable on those items
  • show the total of those values separately

Most of the invoices you issue and receive probably already show the required information.

Find out about purchases and VAT receipts

More about invoicing electronically in VAT Notice 700/63

Find out about tax points - when transactions take place for VAT purposes

Get information about the different rates of VAT

Get information on finding the right VAT rate for particular goods or services

See an example of a VAT invoice in VAT Notice 700/21

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To whom a VAT invoice must be issued


If you are a seller registered for VAT you must give a buyer who is registered for VAT a VAT invoice for any standard-rated or reduced-rated items sold. If you are a retailer, you do not need to issue a VAT invoice or receipt unless asked to do so by the buyer. A VAT registered supplier may be fined if they do not issue a VAT invoice when asked to do so by a VAT registered buyer.

Find out what could happen if you do not issue a VAT invoice when asked to do so by a customer

When a VAT invoice must not be issued

You must not issue a VAT invoice in the following situations:

  • your customer uses self-billing arrangements or you use authenticated receipts
  • you make a gift of goods on which VAT is due
  • you are selling goods using the VAT margin scheme for second-hand goods
  • you are selling goods using the tour operators' VAT margin scheme

More about self-billing in VAT Notice 700/62

Find out about VAT on gifts, vouchers, discounts and offers

Find out about the second-hand goods margin scheme

Get information about VAT schemes and how they differ from standard VAT accounting

Time limits for issuing VAT invoices

Generally you must issue VAT invoices within 30 days of a tax point arising. In some situations, you may be able extend the 30 day time limit.

Find out about tax points and how you can extend the invoice time limit

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Where simplified or modified VAT invoices can be issued

Simplified VAT invoices

If you sell goods or services for £250 or less including VAT, then you can issue a less detailed VAT invoice. A simplified VAT invoice only needs to show the following information:

  • the seller's name and address
  • the seller's VAT registration number
  • the tax point
  • a description of the goods or services

For each different VAT rate, your simplified VAT invoice must also show:

  • the total price including VAT
  • the VAT rate applicable to the item

If you accept credit cards, then you can create a less detailed invoice by adapting the sales voucher you give the cardholder when you make the sale.

You do not need to keep copies of any less detailed invoices you issue.

Modified VAT invoices

If you sell goods or services for more than £250 including VAT, and your customer agrees, you may issue a modified VAT invoice showing the VAT-inclusive value of each standard-rated or reduced rate item.

The modified VAT invoice must show separately the total:

  • VAT-inclusive value of each standard-rated or reduced rate item.
  • VAT payable on those items
  • value of those items excluding VAT
  • value of any zero-rated items included on the invoice
  • value of any exempt items included on the invoice

The modified invoice must otherwise show the details required on a full VAT invoice.

If you are unable to offer either a simplified or modified invoice, you must issue a full VAT invoice.

Get information about calculating VAT for VAT-inclusive amounts

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If a buyer pays in cash

If your customer pays in cash, you must, if asked, indicate on the VAT invoice that you have received payment and when you have received it.

How VAT sales invoices must be numbered

You must number your sales invoices in sequential order. If you spoil or cancel a serially numbered invoice, you must keep it to show to a VAT officer at your next VAT inspection.

Find out what happens when a VAT officer comes to visit you

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Sales records for your VAT account

Your VAT sales summary in your VAT account must be in the same order as your copy invoices and show separate totals for:

  • VAT on your sales
  • VAT exclusive values on your sales
  • any exempt sales
  • adjustments from any VAT accounting schemes you may use
  • adjustments or errors in earlier returns
  • self-supplies
  • road fuel scale charges
  • VAT on certain postal imports and imported services
  • VAT on sales to other European Union (EU) countries

Find out about reclaiming VAT on motoring expenses

Find out about VAT and international trade

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Electronic VAT invoicing

You can issue, receive and store your VAT invoices in electronic format. You don’t need to tell us if you plan to issue, receive and/or store invoices electronically.

Electronic invoicing offers many possible advantages over traditional paper invoicing, such as:

  • better security of data and documents
  • faster and easier access to invoices
  • improved order tracking
  • less reliance on paper
  • savings in processing, handling and storage costs
  • fewer disagreements relating to invoices and payments
  • invoices you send electronically are received more quickly, which could mean you’re paid faster

Electronic invoices must contain the same information as paper invoices.

The same rules apply to the storage and access of electronic invoices as they do to paper invoices, so you need to make sure that if you issue electronic invoices you always have a back-up copy - whether on paper or stored electronically.

VAT invoices when trading internationally

You may issue VAT invoices (paper or electronic) to your customers in a foreign currency and/or in a foreign language. However, you must:

  • convert the total VAT payable into sterling on your VAT invoice if the supply takes place in the UK
  • be able to provide an English translation of any invoice within 30 days if asked to do so by a visiting VAT officer.

Find out about charging VAT on supplies of services abroad

Find out what happens when a VAT officer comes to visit you

Find out about VAT and international trade

Find out how to deal with transactions in other currencies

More useful links

Find out about charging VAT

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